People expect an announcement soon of a grand settlement between state attorneys general and federal regulators on one side and banks and mortgage services on the other. We've noted the vaunted 27-page settlement offer regulators sent banks a week or so ago.

We've also noted on a few occasions that a quick settlement would be nice from the banks' point of view, as it would help pave the way for an ending to the foreclosure fiasco. But a commentator in the New York Times suggests a number of issues must still be resolved.

She notes one apparent victory for the banks: the treatment of first and second liens. The settlement effectively makes them equal, which means banks, which own a lot of second liens, have protection equal to that for first liens, which are mainly owned by investors. That "turns upside down centuries-old law requiring creditors at the head of the line to be paid before i.o.u.'s signed later."

The biggest issue yet to be resolved, however, regards the remedies that regulators will forgo. Will they agree not to pursue enforcement actions against these banks and servicers? Will individuals be prevented from suing on their own? Lots of questions remain.

For more:
- here's the column

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